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Builder Gibraltar Homes relieved of debt's pressure

Published: Thursday, February 7, 2013 at 1:00 a.m.

Last Modified: Wednesday, February 6, 2013 at 8:12 p.m.

Gibraltar Homes, which has been struggling financially amid a general rebound in housing starts regionwide, this week completed terms of a gradual debt write-down tied to an unfinished Manatee County project.

Facts

GIBRALTAR HOMES:

Bougainvillea Place, an Ellenton subdivision, represents the homebuilder's largest community under development. It also sells homes in Lakewood Ranch, also in Manatee County.

The renegotiated debt terms call for $6.8 million in loans to gradually be reduced to $3.9 million over four years, said Albert A. Sanchez Jr., Gibraltar's president.

Bougainvillea Lenders LLC, a group that includes Sarasota attorney David S. Band and prominent investor and philanthropist Stanley Kane, had also been involved in previous Gibraltar projects, records show.

"This is still Gibraltar's development," said Wayne Ruben, a real estate developer who handled negotiations on Kane's behalf.

"It is a comprehensive solution where the lender is becoming an effective partner and sharing in the proceeds," Sanchez said Tuesday.

Launched during the residential real estate boom of the mid-2000s, Bougainvillea Place has a fancy gated entrance and amenities that include a clubhouse to attract potential buyers.

But Gibraltar's financial troubles have left four homes in the community unfinished. At present, Bougainvillea Place has only three dozen dues-paying homeowners in the community's homeowners' association, and 55 unsold lots.

Kane and Band's group has agreed to be paid back on a piecemeal basis as Gibraltar sells out the remaining homesites in the 100-unit subdivision.

It also will provide a $1 million revolving fund from which Gibraltar can finance customers who put 20 percent down on home purchases. In exchange, Bougainvillea Lenders will share in overall profits. Each time Gibraltar sells a new homesite, Sanchez said, the lenders will receive a predetermined amount that will have a leveraged effect on reducing the overall debt.

If the predetermined amount due the lender on a lot sale were $57,500, for instance, the amount of principal reduction on Gibraltar's revised loan agreement might be $100,000, Sanchez said.

<p>Gibraltar Homes, which has been struggling financially amid a general rebound in housing starts regionwide, this week completed terms of a gradual debt write-down tied to an unfinished Manatee County project.</p><p>Bougainvillea Place, an Ellenton subdivision, represents the homebuilder's largest community under development. It also sells homes in Lakewood Ranch, also in Manatee County.</p><p>The renegotiated debt terms call for $6.8 million in loans to gradually be reduced to $3.9 million over four years, said Albert A. Sanchez Jr., Gibraltar's president.</p><p>Bougainvillea Lenders LLC, a group that includes Sarasota attorney David S. Band and prominent investor and philanthropist Stanley Kane, had also been involved in previous Gibraltar projects, records show.</p><p>"This is still Gibraltar's development," said Wayne Ruben, a real estate developer who handled negotiations on Kane's behalf.</p><p>"It is a comprehensive solution where the lender is becoming an effective partner and sharing in the proceeds," Sanchez said Tuesday.</p><p>Launched during the residential real estate boom of the mid-2000s, Bougainvillea Place has a fancy gated entrance and amenities that include a clubhouse to attract potential buyers.</p><p>But Gibraltar's financial troubles have left four homes in the community unfinished. At present, Bougainvillea Place has only three dozen dues-paying homeowners in the community's homeowners' association, and 55 unsold lots.</p><p>Kane and Band's group has agreed to be paid back on a piecemeal basis as Gibraltar sells out the remaining homesites in the 100-unit subdivision.</p><p>It also will provide a $1 million revolving fund from which Gibraltar can finance customers who put 20 percent down on home purchases. In exchange, Bougainvillea Lenders will share in overall profits. Each time Gibraltar sells a new homesite, Sanchez said, the lenders will receive a predetermined amount that will have a leveraged effect on reducing the overall debt.</p><p>If the predetermined amount due the lender on a lot sale were $57,500, for instance, the amount of principal reduction on Gibraltar's revised loan agreement might be $100,000, Sanchez said.</p>